Halliburton Division has the following data: The fixed costs are not avoidable and must be allocated to profitable divisions if the segment is eliminated.What will be the incremental effect on net income if Halliburton Division is eliminated?
A)$60,000 increase
B)$260,000 decrease
C)$280,000 decrease
D)Cannot be determined from the data provided

Question

Halliburton Division has the following data:  The fixed costs are not avoidable and must be allocated to profitable divisions if the segment is eliminated.What will be the incremental effect on net income if Halliburton Division is eliminated?
A)$60,000 increase 
B)$260,000 decrease 
C)$280,000 decrease 
D)Cannot be determined from the data provided

Quizplus · Accepted Answer

The Answer of Halliburton Division has the following data:  The fixed costs are not avoidable and must be allocated to profitable divisions if the segment is eliminated.What will be the incremental effect on net income if Halliburton Division is eliminated?
A)$60,000 increase 
B)$260,000 decrease 
C)$280,000 decrease 
D)Cannot be determined from the data provided

Halliburton Division Has the Following Data: the Fixed Costs